TSC Film Signs Exclusive Distribution of Hemdale Film Library

Business Wire, March 28, 1996

VANCOUVER, British Columbia--(BUSINESS WIRE)--March 28,1996--Shannock (TSE:TSH) subsidiary "TSC Film" is pleased to announce that on March 15, 1996, it acquired the exclusive Hemdale Video library for television distribution in English Canada. The library consists of 28 full-length films and will generate an estimated $1.5 million in revenues. The films will be distributed to various Canadian broadcast media throughout the length of the five-year contract.

TSC Film continues negotiating with major film pre/post-production facilities, and is exploring the feasibility of forming key strategic alliances or joint ventures to further promote this Shannock subsidiary.

TSC Shannock's consolidated December sales were up $1.7 million over the same period last year. The number of order returns during the weeks after the Christmas holidays was down, a direct result of refined inventory management and a better order quantity system on a customer-by-customer basis. This led to reduced shipping and handling charges, which in turn helped to decrease operating expenses. January 1996 recorded the highest ever sales revenues for any January in company history, while February sales exceeded forecasted results.

Shannock's 3rd quarter results (nine months ended February 29, 1996) will not be released until the 3rd week of April due to the continuing audit of Echo Video and Canavision. However, preliminary results indicate that the consolidated sales for the nine-month period ended February 29, 1996, were $72 million, which is $600 thousand over the initial forecasts.

Shannock is a publicly-traded corporation listed on the Toronto Stock Exchange (symbol - TSH). Founded in 1978, TSC Shannock Corporation has grown from one of Canada's largest video wholesale distributors into a full-service provider to the entertainment industry. This has been accomplished through the company's integration of film distribution, tape manufacturing and duplication, as well as the acquisition of exclusive distribution rights. The company's headquarters are located in British Columbia, with eight distribution centres and sales offices across the country. -0-

Note to Editors: The Toronto Stock Exchange has not approved or disapproved of the information contained herein.

CONTACT: TSC Shannock Corp.

Trudy Dalinger, 604/433-3331

800/288-4841

or

TSC Shannock Corp.

Malcolm Earle, 604/433-3331

800/288-4841